Greggs set to hike prices from tomorrow as boss pleads with Rachel Reeves for 'balanced budget'

Boss Roisin Currie said the business had been caught off guard by a £20million rise in National Insurance contributions, forcing the bakery giant to act.

Greggs, which runs more than 2,675 shops across Britain, said it had worked to shield customers but could not avoid passing on some of the costs.

The increases will affect breakfast deals and a selection of bakery items, although the chain pledged to protect certain staples from rises.

This marks another blow to consumers already facing financial pressures, as businesses across the retail sector struggle with rising operational costs.

The two-item breakfast combination, which includes a roll and beverage, will increase from £2.95 to £3.15, whilst the three-item option featuring an additional side like yoghurt or hash browns jumps from £3.95 to £4.15.

Selected bakery products face smaller increases, with items such as the empire biscuit rising by 5p.

The company's signature sausage roll remains unchanged at £1.30 following an earlier increase this year.

"It still offers exceptional value," Ms Currie insisted regarding the breakfast deals, emphasising that numerous other products "will be protected and will not move."

The retailer has expanded its range to include protein-rich options like egg pots and protein shakes, alongside seasonal offerings including pumpkin spice lattes and toffee fudge muffins.

The unexpected National Insurance burden has particularly frustrated company leadership, with Ms Currie highlighting the difficulty of managing operations when facing a "£20m hit that you hadn't predicted or weren't aware was coming."

She expressed hope for a "balanced Budget" when Chancellor Rachel Reeves unveils her fiscal plans in November, stressing that "what's not helpful are surprises."

The chief executive called for "reasonable notice and good lead time" for any future policy changes, urging the government to remain "attuned to pressure on people's incomes."

Rising minimum wage requirements have compounded the financial strain, with Ms Currie identifying employment as the "big cost" the company must absorb this year.

The bakery chain remains uncertain about future inflationary pressures and potential additional increases to the national living wage.

The company reported a 6.1 per cent increase in sales during the third quarter of 2025 compared with the previous year, though comparable store sales growth decelerated to 1.5 per cent year-on-year.

This represents a marked slowdown from the 2.6 per cent like-for-like growth achieved during the first half of the year.

Despite these headwinds, Greggs maintains ambitious expansion plans, targeting approximately 120 net new store openings this year, having already achieved 57 net additions.

The chain is particularly focused on securing locations in transport hubs including railway stations, bus terminals and airports, alongside opportunities in petrol forecourts, supermarkets and retail parks.

Recent openings include partnerships with Tesco and Sainsbury's, whilst the company has also relocated smaller outlets to more advantageous positions.

Southern England remains a key growth area as the bakery chain approaches 3,000 locations nationwide.